The twenty-first century will witness a rapid urban expansion in the developing world. India, it is believed, will be at the forefront of such a phenomenon. This book acknowledges the role of agglomeration externalities as the cornerstone of urban public policy in India.
Arguing that hypotheses of over-urbanization and urban bias theory—which articulated a negative view of urbanization—are based on fragile theoretical as well as empirical foundations, this book calls for proactive public policy to harness planned urbanization as resource. India requires agglomeration-augmenting, congestion-mitigating, and resource-generating cities as engines of economic growth, including rural development.
The book provides a large number of practical examples from India and abroad to enable policy-makers undertake reforms in urban and regional planning, financing, and governance to meet the challenges of urbanization in India. It combines theory and practice to draw lessons for an urban agenda for India and recognizes the central role of cities in catalysing growth and generating public finance for economic development.
Chapter 7: Institutional Framework for Good Urban Governance
Institutional Framework for Good Urban Governance
Governance and Institutions
Governance, institutional framework, organizational structure, and human resource management are key issues in the contemporary debate on development effectiveness. Government missions, schemes, and projects fail due to the lack of attention to these critical factors. Even if they succeed, the results are often unsustainable due to a disconnect with the incentive structures in governance institutions. A general finding from the empirical literature of democracy and development, new institutional economics, and organization theory is that weak local government institutions and organizations seriously undermine the efficacy of socio-economic development and poverty reduction programmes. This chapter deals the issues of institutional adequacy and performance in the light of the implementation of the Constitution (74th Amendment) ...